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Meta's Cash Burn, AMD -8% & ASML's Hard Supply Ceiling
Audio is available on Spreaker — see link below.
AI hardware stocks took a beating as Meta's negative free cash flow and AMD's eight-percent single-session drop signalled a capex reckoning across the semiconductor industry. From ASML's EUV capacity warning through 2028 to TSMC's Arizona milestone and Qualcomm's data centre debut, this episode maps the fault lines.
Audio is available on Spreaker — see link below.
Meta posted its first negative free cash flow since two thousand twelve last quarter. It's still spending heavily on AI infrastructure.
The immediate consequence landed on AMD. The stock fell eight percent in a single session, shedding nearly forty-five dollars to close around five hundred and eight.
Intel moved the other direction. JPMorgan upgraded the stock from underweight to neutral, citing improved risk-reward after it fell to the mid-eighties.
The supply side has its own structural problem, and ASML made it explicit. The company posted record third-quarter sales of eleven-point-seven billion euros and guided to forty-four to forty-five billion euros for two thousand twenty-six.
TSMC is tracking toward a fifty percent profit jump in the first quarter, with capex guidance raised to sixty to sixty-four billion dollars. High-volume N4 production has begun in Arizona.
Lam Research added to the cautious picture with weaker-than-expected guidance, citing supply chain pressure. The equipment layer is signaling stress from both ends.
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